Are Cryptocurrencies Still Used For Fraudulent Activities?

[Jasz]

Yes, cryptocurrencies are still used for illegal activities despite the regulations. Many people use cryptocurrency because of its anonymous nature (for example, if you were a drug dealer who wanted to receive money anonymously), which means that if you use cryptocurrency, it's almost impossible to trace what you're doing with that money. In fact, the fact that it's hard to trace is one of the biggest reasons why people use cryptocurrency.

Most people are familiar with the idea that Bitcoin is a currency that can be used to purchase things online, but not many people realize that it is also used for illegal activities, such as weapon drugs.

However, there have been steps taken to regulate cryptocurrency and make it more difficult to use for illegal activities. The United States government has recently taken an interest in regulating cryptocurrency exchanges like Coinbase because they fear that criminals will use them for illegal activities such as money laundering and terrorism financing.

These steps have been taken also by companies like Facebook, which has recently banned foreign cryptocurrency ads on its platform. If cryptocurrencies are regulated more in the future (which they probably will be) they might be less useful for illegal activities because they can be traced more easily.

There have been several instances where law enforcement agents harras citizens based on their crypto assets. This has prompted many people to ask: "Are cryptocurrencies still used for illegal activities despite the regulations?"

 

[Sotherefore]

The point is that , you won't even know when cryptocurrency is being used for illegal activities . But i believe it is still possible because of the unique feature of cryptocurrency i.e the encryption technology which make all transaction in the cryptographic legder impossible to detect.

Even though cryptocurrency is highly encrypted , There is how the security and the Cyber criminal agency are able to track down the address of cryptocurrencies user who are engaging in illegal activities.

A lot of criminal may not likely want to use the bank to engage in their illegal activities because they understand that they may not be safe when using bank account , but will prefer to use cryptocurrency which they understand that all their transaction and everything in the crypto space is completely secured and hidden from the public since there is no organisation controlling it.

It is our responsibility is to be careful especially when dealing with cryptocurrency with unknown people especially some certain number of people on telegram because most of them are not really trusted and you could actually be scammed with cryptocurrency, after all even if you have their wallet address you won't even use it to do anything.

 

[libertasbella]

I never understood this argument against crypto – as if legal tender is somehow totally irrelevant to crime.

 

[eldavis]

When it comes to illegal activities taking place with crypto currency, the various regulations put in place has done notting to stop this from happening. People are still being scammed with crypto currency and others are still carrying out their fraudulent activities. Even here in my country where there is a current restriction on crypto, it has not stopped people from doing what they want to do.

 

[sincerem]

We shouldn't be directing to illegal, because crypto, fiat, and even precious metals see used for illegal things online and offline. In the past when crypto never been in existence, fiat currencies were at the center of attraction their is no doubt to that. Now, it seems more attention is focused on crypto due to its anonymity, but it doesn't mean that transactions can't be spotted in the blockchain. Even as crypto is anonymous, still scam transaction can still be traced, that's why we have transaction IDs, which tells how the destination of the transaction in the blockchain. If you make use of advanced tech, you can spot that up. In the past, FBI have recovered stolen crypto funds before, by tracking it's transaction history, and it's destination, it was spotted and the culprits were tracked and caught, crypto was recovered. So, we should not think that crypto is beyond trace because the system used to build it is completely anonymous, or encrypted.

 

[btaliat]

This is a weak argument against crypto. It is only used to target crypto. This is because there is no medium of exchange that cannot be used for fraud. Before the advent of crypto. We all know that people were being defraud of their money through the existing means then. This has shown that there is no moral justification that it is only crypto that can be used for fraud.

And even if the argument is true, there are some measures that all crypto platoforms have put in place just to make sure their users are not a victim of fraud. There are KYC and some other security measures that have been put in place to make sure that there people are secured.

Government only uses that argument to make sure that people don't really put trust in crypto but make use of fiat currency. Although, it is not everybody that bought this lie. In fact, it is only people that are very gullible and not really lovers of crypto that are easily deceivd by this white lie.

Whether in fiat and crypto, we need to make sure we are very careful for us not to fall victims of fraud.